WA Apartment in Perth - What Suburb?

Discussion in 'Where to Buy' started by Realist35, 16th Dec, 2016.

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  1. Realist35

    Realist35 Well-Known Member

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    Hi All,

    And happy Friday:)!

    As part of my overall investment strategy, I'm planning to buy an apartment in Perth sometime in the near future. I'll be monitoring the market closely and watch for the signs of recovery.

    My budget is quite limited, roughly around 250k. For this budget I can buy a 1 bedder in a slightly nicer suburb, but my understanding is 2 bedders are better for CG. I have noticed I can still buy a 2/1/1 apartment in suburbs like Wembley, Osborne Park and Glendalough (my preference in that order).

    What other suburbs I should keep an eye on?

    Some examples of what I can get:

    reiwa.com - 14/167 Edward Street, Osborne Park

    reiwa.com - 23G/47 Herdsman Parade, Wembley

    reiwa.com - 20/29 Heard Way, Glendalough
     
  2. sash

    sash Well-Known Member

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    I am not looking at apartments...but I am hearing Doubleview seems to have a low vacancy rate....and good buying for apartments.

    Just heard this the other day...mostly looking at houses .....so you need to DYODD....

     
  3. Realist35

    Realist35 Well-Known Member

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    Thanks Sash. I just had a quick look - they seem to be well above my budget.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That is a very low price point but if I was trying to stick to it then I'd go for a small older block with less than 10 apartments and not stuck in a sea of a million other apartments which I find is an issue in Wembley

    There are some older apartments in Doubleview from the 50s etc which could work for that budget. They are now pretty rare to get but are popular as it's hard to buy into the area for that price. 2/288 Ravenscar Street Doubleview WA 6018 - Unit for Sale #123930054 - realestate.com.au


    Scarborough also has some similar Something like this Unit 4 77 Abbett Street Scarborough WA 6019 - Apartment for Sale #123732322 - realestate.com.au
     
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  5. Realist35

    Realist35 Well-Known Member

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    Thanks a lot Westminster.

    Is a pool disadvantage?

    Should I try to get a 2/1? For example:
    reiwa.com - 14/167 Edward Street, Osborne Park

    I understood growth of 1/1 apartments is generally very limited. Not necessarily true?
     
  6. Hwangers

    Hwangers Well-Known Member

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    nice! what you think about vacancies when it comes to units? you don't mind the potential extended vacancy period?
     
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  7. Realist35

    Realist35 Well-Known Member

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    I don't know much about it. Still feeling the ground and learning:).
     
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  8. DaveyB

    DaveyB Well-Known Member

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    Older stuff under 280 has dropped 15-20% in areas I watch- e Perth maylands etc

     
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  9. hammer

    hammer Well-Known Member

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    I would strongly suggest that you lowball. You'll get a lot of misses but it only takes one hit.

    People are hurting in Perth....someone will "just want it gone".

    Aim higher. You'd be mad not to. ;)
     
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  10. Shankiedoodle

    Shankiedoodle Well-Known Member

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    Hey realist, ive been looking at apartments too. I've been looking at Mt Lawley and Maylands more though. I think generally 1-1 units in gentrified areas are more like long-term yielders rather than CG. You may have longer vacancy periods though from what i've from some of my peers I've been talking to. Also, the general concensus seems like yes? The more complicated the more likely expenses may blow out. That said, the one Westminster raised seems like a really decent place. (I would totes low ball if i could though)
     
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  11. Realist35

    Realist35 Well-Known Member

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    Thanks mate.

    So I should aim for 2/1 rather than 1/1?

    And no pool?
     
  12. Realist35

    Realist35 Well-Known Member

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    Would you start lowballing already or wait for the signs of economy/market improvement?

    And what do you considering lowballing:)? Say the apartment is 330k, what would be a lowball offer:)?
     
  13. hammer

    hammer Well-Known Member

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    I did this recently to buy my own unit in Darwin (similar market). My strategy was to watch the listings, daily. After a few months you can see which places are moving and which ones aren't. You get a feel for the real Price and potential lowball candidates.

    The best time to lowball is when the market is depressed. Once it starts rising it will be harder.

    I am a newbie though...so I asked the forum how to approach it. They delivered as usual. :)

    Here is the thread...

    The art of the lowball
     
  14. sash

    sash Well-Known Member

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    Yep...an excellent way to go about it...you need to focus on 2-3 suburbs...and clinically low ball. It is a numbers game....

    A work of warning be prepared to laughed at...sneered at.....yelled at....and need to justify it...and have a cavalier attitude that there will be something else around the corner...the trick is not to be emotionally attached and contain your enthusiasm.

    What were the numbers your purchase in Darwin?

     
  15. hammer

    hammer Well-Known Member

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    Our Budget was 450k. Lowballing was a must in order to minimise pain...thats how bad the Darwin market is.

    We were looking at old 2br duplexes in the suburbs for around 350, the plan was to then renovate for 50k and have a nice house.

    Because I was always on the prowl...a 2br duplex in a self-managed group of 4 (two opposing duplexes) came up for Auction. It was fully renovated, spa,, landscaped on 220m2 and next to the CBD...I can walk to work (only need 1 car). The kicker is that there is (in theory) a simple way to add one wall and turn it into a 3br.

    The asking price for something like this is 450k at the moment..(550 2 years ago). so I put in a pre-auction offer of 370k.

    They told me to go away (expected)...then a few weeks later I went to the auction and I got it for 380k. If I was better at negotiating maybe I could have got it for a bit less? But as a first home newbie purchase, I am happy with the result. I costs us the same as renting.

    Anyway, I went from thinking about an average duplex in the burbs to a swanky inner city place with a potential value add 70k under budget and no rents required. I'm still pinching myself.... :)
     
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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The most important thing whether its 2 x 1, 1 x 1 is the amount of similar buildings in the suburb, the condition of the building and it's strata/body corporate fees. A pool would normally raise the strata/BC rates but in some places it's still reasonable so it might not be a deal breaker.

    You don't want to face a lot of competition in renting it out - if there are another 20 apartments available for lease at the same price it's a nightmare.

    With the age of many of these units concrete cancer is a HUGE concern - it's prevalant in many of them - especially the larger/taller blocks in Maylands.
     
  17. sash

    sash Well-Known Member

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    Nice work....yep...that is how it works...congrats!



     
  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  19. Realist35

    Realist35 Well-Known Member

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    I would be able to go to around 300k. The only reason I opted for an apartment is because I thought that's the only thing I can get for that price point.

    Isn't Girrawheen a bit too far out from CBD to experience solid CG?
     
  20. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I can't say whether Girrawheen will or won't. It has experienced growth in the past due to rezoning and it's around 15km from the city so quite close to the city really.

    Traditionally things with land component get better CG than things that don't - but there is always exceptions to the rule.

    These are all things you will need to investigate to work out if a suburb is right for what you want. At the #250-300k mark you can buy houses/duplexes/villas in Thornlie, Gosnells, Two Rocks, Mandurah, Dianella, Coobellup and similar type areas. You can also do House and Land for that price in Ellenbrook, Alkimos, Two Rocks and other areas - then you get the added bonus of depreciation but you'd be a lot further from the city
     
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